Cost of acquisition for calculation of capital gain

What all items can be included as cost of acquisition of flat while calculating capital gain? There are

1. Charges which were part of purchase agreement like Maintenance security deposit

2. Charges which were not earlier part of agreement but later charged like Electric Connection charges, Electric connection security deposit, annual maintenance charges etc.

Kindly suggest if both type of charges can be included in cost of acquisition. Both needed to be compulsorily paid to get possession of the flat.

Replies (6)
Quick Summary
This discussion explores which expenses can be included when calculating the cost of acquisition for capital gains tax on a flat. It questions whether charges from the initial purchase agreement, like maintenance security deposits, and later charges such as electric connection fees and annual maintenance charges, are deductible. The consensus leans towards excluding refundable security deposits and revenue expenses like AMC and electricity connection charges from the cost of acquisition. Interest on a home loan is generally only deductible if it pertains to the pre-construction period.

In my opinion, the security deposit will not be part of COA because they are refundable in nature. 

Further, AMC and eletricity connection charges are revenue expenses that cannot be added to COA. 

 

First was added to cost except deposit while other charges in second point are not part of cost

Can interest paid on home loan be added to cost of acquisition?

Only if belongs to pre construction period

It seems indexation can be done from the year when allotment letter is issued. What should be year of indexation for payments made after the year of allotment.

Date of allotment is considered for all paymnts

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